ERDF SUPPORT FOR SME COMPETITIVENESS 2014–2020: FINANCIAL ABSORPTION VERSUS POLICY EFFECTIVENESS — A COMPARATIVE ANALYSIS ACROSS EU MEMBER STATES
ERDF SUPPORT FOR SME COMPETITIVENESS 2014–2020: FINANCIAL ABSORPTION VERSUS POLICY EFFECTIVENESS — A COMPARATIVE ANALYSIS ACROSS EU MEMBER STATES
Ioan SZUCS
West University of Timisoara, Faculty of Economics and Business Administration
ioan.szucs@e-uvt.ro
Abstract: The European Regional Development Fund (ERDF) allocated EUR 42.73 billion to Thematic Objective 3 (SME competitiveness) across 203 operational programs in 26 EU member states during the 2014–2020 programming period. This article examines the gap between financial absorption — a near-complete 99.7% by programme closure — and actual improvements in SME competitiveness. Drawing on two primary ESIF open datasets (Finance Planned Details and EU Payments Timeseries, March 2026 update) merged with the findings of the European Court of Auditors Special Report 8/2022 (ECA, 2022), this study conducts a comparative analysis across all EU member states. The results reveal four structural weaknesses: (1) a critical-mass problem caused by extreme variation in per-SME support amounts (from EUR 392,000 in Austria to under EUR 1,000 in Ireland); (2) a late spending rush, with 50% of all payments concentrated in 2020–2022; (3) a systematic preference for non-repayable grants over financial instruments; and (4) the absence of mandatory alignment between ERDF programs and national SME strategies. The article argues that financial absorption is an indicator of administrative compliance, not of policy effectiveness, and proposes design reforms for the 2028–2034 programming cycle.
Keywords: ERDF; SME competitiveness; cohesion policy; financial absorption; structural funds; 2014–2020; EU regional development.
JEL Classification: R11; R58; H72; L25; O38.
